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Acme Sales Has Two Store Locations

Question 65

Multiple Choice

Acme Sales has two store locations.Store A has fixed costs of $125,000 per month and a variable cost ratio of 60%.Store B has fixed costs of $200,000 per month and a variable cost ratio of 30%.What is the break-even sales volume for Store A?


A) $208,333.
B) $312,500.
C) $325,000.
D) Cannot determine with the information given.

Correct Answer:

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